Issues of concern to people who live in the west: property rights, water rights, endangered species, livestock grazing, energy production, wilderness and western agriculture. Plus a few items on western history, western literature and the sport of rodeo... Frank DuBois served as the NM Secretary of Agriculture from 1988 to 2003. DuBois is a former legislative assistant to a U.S. Senator, a Deputy Assistant Secretary of Interior, and is the founder of the DuBois Rodeo Scholarship.

Tuesday, May 13, 2014

Obama Blocks Keystone To Start Energy Takeover

After successfully bringing more than 30% of the U.S. economy — the
health care and financial services industries — under political control
during his first term, President Obama made it clear last week that a
priority of his second term is to go after the energy sector — another
10.5%.
The purpose of the White House's orchestrated release of the National
Climate Assessment on May 7 was to set the stage to drive energy
markets and fossil fuels under the heel of more government regulation.
Most Americans would celebrate knowing that the U.S. is on the cusp
of oil and gas energy independence and the lower prices that will follow
— especially with memories of OPEC's oil embargo and the cartel's
ongoing ability to manipulate markets.
So with Obama promoting more energy regulation and choosing to hold
up construction of the Keystone XL pipeline — one of the three legs of
U.S. energy independence — many Americans wonder what's going on.
First, some background. The primary purpose of Keystone XL is to
transport crude oil from the oil tar sands of Alberta, Canada's
Athabasca region to refineries on the Gulf Coast in Texas and Louisiana
that are specifically designed to process and refine heavy crude into
byproducts such as gasoline, diesel and jet fuel.
Radical environmentalists may have heightened opposition to so-called
dirty oil from tar sands, but the end products are essentially the same
as those refined from light sweet crude.
Travel by air, rail and ship require petroleum-based fuels, and with
94% of America's electric power coming from legacy sources — largely
fossil fuels — and only 4% provided by solar and wind (made possible
only by huge tax subsidies), it makes enormous sense to bring on more
supply, lower prices and reduce OPEC's influence.
...If the U.S. does not take full advantage of the Canadian oil sands
resource, China certainly will to a greater and greater extent. In
February 2013, the Chinese National Oil company, CNOOC, closed the $15
billion acquisition of Canada's Nexen Oil Co. — which has a significant
stake in the Alberta oil sands.
Most environmentalists think globally and must realize that delaying
Keystone only gives China more clout in securing a larger portion of the
oil sands. And then who wins? Certainly not Mother Earth, given China's
horrid environmental record.
Then there's the current Venezuelan regime, which benefits from
limiting the flow of oil from Canada. Most of the capacity of the Texas
and Louisiana refineries, which would be the destinations for Keystone
pipeline output, is taken up by heavy oil from Venezuela.
...People also need to follow the money and understand the Keystone
holdup by analyzing who benefits. Opposing the Keystone XL pipeline is a
lightning rod and cash cow for the Democratic Party.
Environmentalists who are among the 1% — notably Tom Steyer — have
pledged $100 million to fight Keystone and fossil fuels. Oh, and then
there is billionaire Democrat Warren Buffett, whose Burlington Northern
Santa Fe railroad capitalizes on transporting the oil that would
otherwise flow more safely and economically through the Keystone
pipeline.
....Internationally, the Keystone holdup helps sustain OPEC, while it
weakens U.S. relations with Canada — an immediate neighbor and
longstanding ally. At the same time, blocking Keystone helps China and
Venezuela — two repressive regimes that are often hostile to the U.S.